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1. Summary Problem: Tommy, a single taxpayer with no dependents, has the following items that may affect his taxable income. What is his adjusted gross

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1. Summary Problem: Tommy, a single taxpayer with no dependents, has the following items that may affect his taxable income. What is his adjusted gross income? Employee salary received $70,000 Child support paid to ex-wife 12,000 Total allowable itemized deductions 3,000 Cash gift received from parents 7,000 Gain on the sale of stock 5,000 Loss on the sale of personal residence (10,000) Loss on the sale of stock (6,000) Amount collected from a life insurance policy 40,000 Health insurance premiums paid by his employer 3,000 Winnings from gambling trip to Las Vegas 800 Cost of employer paid parking space 1,200 Government pension benefits received 15,000 Amount his dog earned from being in a television commercial 2,000

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